Aspire Energy

2,700 miles of natural gas pipelines | 16 gathering systems
In 2018, Aspire Energy increased gross margin that was driven by increased natural gas delivered and changes in customer rates. The commercial and residential sectors continue to be the driving force for customer growth for Aspire Energy. In 2018, Aspire Energy confirmed a long-term contract to provide natural gas to all Consumers Gas Cooperative members, and a seven-year contract with Columbia Gas of Ohio.

Chesapeake Utilities and Sandpiper Energy

Chesapeake Utilities continued to extend its distribution systems throughout Delaware including into the eastern portion of Sussex County, DE, and its expansion into Cecil County in northeastern Maryland. As a result of identifying solutions for potential commercial and industrial customers, in early 2018, Chesapeake Utilities began construction of its Principio Business Park gas main project from North East to Perryville, MD. The project was completed, extending our infrastructure to provide natural gas to businesses and residents in this area.

Since the initial investment, additional large industrial and commercial customers have shown interest in locating to Principio Business Park, potentially generating approximately 2,000 direct job opportunities for the community.

The Sandpiper Energy team has converted more than 7,600 homes and businesses to natural gas in West Ocean City, MD, since the project was initiated in 2013.

ESNG

21,495 total HP of compression | 294,919 dekatherms system deliverability

Within the last 10 years, ESNG has invested $265 million in its pipeline system and related infrastructure. In response to the winter peak days experienced in 2014 and 2015, ESNG initiated several projects to improve overall system operational reliability.  During the 2018/2019 winter, ESNG set a new daily delivery record in excess of 250,000 dekatherms.  Our record deliveries validate both our continued growth in system demand as well as the enhanced operational reliability.

2017 Eastern Shore System Expansion Project

$117M investment | 17 miles of pipeline expansion | 3,750 HP of compression

The largest single construction project in Chesapeake’s history was completed and placed in-service in 2018.  The $117 million transmission system expansion increased Delmarva delivery capacity by 26 percent and will help meet the growing energy requirements of southern Delaware and the Eastern Shore of Maryland.

The $117 million capital investment consists of approximately 23 miles of pipeline looping in Pennsylvania, Maryland and Delaware; upgrades to existing metering facilities; installation of an additional 3,750 horsepower compressor units at the existing Daleville Compressor Station in Chester County, PA; and approximately 17 miles of new mainline extension and the addition of two pressure control stations in Sussex County, DE.

Del-Mar Energy Pathway Project

$37.1M investment | 20 miles of pipeline extension

The Federal Energy Regulatory Commission (FERC) has issued a positive environmental assessment of the Company’s Del-Mar Energy Pathway Project.  The project, which was applied for in September 2018, proposes the construction and operation of new natural gas pipeline and meter and delivery stations in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland.

The FERC staff concluded that the proposed Del-Mar Energy Pathway Project, with appropriate mitigating measures, would not significantly impact the environment. The project proposes to add approximately 12 miles of natural gas pipeline in Kent and Sussex counties and nearly seven miles of pipeline in Wicomico and Somerset counties. FERC certificate authorization is anticipated by the end of the second or third quarter of 2019 and construction of the Del-Mar Energy Pathway Project is expected to commence later this year.

The construction and operation of the new natural gas pipeline and related facilities will provide approximately 11.8 million cubic feet per day of additional natural gas firm transportation service and 2.5 million cubic feet of off-peak transportation service to Chesapeake Utilities’ natural gas distribution subsidiaries on the Delmarva Peninsula and one industrial customer.

FPU

49 miles of natural gas transmission pipelines | 2,862 miles of natural gas distribution mains | 905 miles of electric distribution line | 9 electric substations | 1.1 gallons of bulk propane of storage capacity

Our Florida energy presence continues to grow as we serve natural gas distribution, propane gas distribution and electric customers from 15 counties in central Florida to 41 counties throughout the state.

One of our greatest and at the same time most heartbreaking accomplishments in 2018  was the response and restoration of electric service after Hurricane Michael.  On October 10, 2018, Hurricane Michael, recently upgraded to a Category 5 hurricane, was the first Category 5 storm on record to make landfall in the Florida Panhandle.  Michael’s 160-miles-per-hour sustained wind speed inflicted widespread and severe damage to Northwest Florida.  The FPU Northwest Division electric distribution system was squarely in the storm’s path as it came onshore and moved north into Georgia.  The eye of the hurricane passed over virtually our entire system.  All of our 13,000 customer were without power, with significant portions of our system heavily damaged.

Large sections of our system – miles of wire, thousands of poles and hundreds of transformers – were on the ground.  Thousands of trees were down in neighborhoods and along roadways across the impacted areas.  Our teams had to cut their way down streets, often following a bulldozer, to even access our facilities.

We have a well-developed storm response plan, and our employees are highly trained to assess damage and quickly began the process of service restoration.  Within the first week following the storm we had restored critical medical facilities, several schools, wastewater treatment facilities and other critical service and commercial facilities.  In less than a month, all customers who could receive service were restored.  Our teams have significant experience with storm restoration, including recent efforts after Hurricanes Matthew and Irma.  The damage from Hurricane Michael’s unprecedented force was unlike anything any of our crews had experienced.

View the Hurricane Michael video on our 2018 Annual Report Microsite at cpkannualreport.com/2018 to learn more about FPU’s response, relief and restoration efforts.

Peninsula Pipeline Company

New Smyrna Beach Project

In the fourth quarter of 2017, Peninsula Pipeline Company commenced construction of a 14-mile natural gas transmission pipeline to serve current and planned customer growth for FPU’s natural gas distribution system in the New Smyrna Beach, FL, service area. The project was partially placed into service at the end of 2017 and was fully placed into service during the fourth quarter of 2018.

Western Palm Beach County Florida Projects

Peninsula Pipeline is constructing four transmission lines to bring natural gas to FPU’s natural gas distribution system in West Palm Beach, FL. The first phase of the project was placed into service in December 2018. The remainder of the project is expected to be completed in phases through early 2020.

Northwest Florida Expansion Project

In our first expansion of natural gas service into Northwest Florida, Peninsula Pipeline Company completed construction of transmission lines and the Florida natural gas division completed construction of lateral distribution lines to serve several customers. The project was placed into service in May 2018. This expansion extends our natural gas distribution system to Escambia County, FL, offering additional growth opportunities.

Marlin Gas Services

In December 2018, Chesapeake Utilities Corporation acquired Marlin CNG Services (Marlin), a premier North American supplier of mobile compressed natural gas (CNG) utility and pipeline solutions.  Marlin offers increased opportunities for mobile fuel and virtual pipeline solutions.

Marlin is anchored by its trained, experience and certified staff in safely operating its fleet of CNG tankers, mobile compressors and patented mobile off-load regulator to provide a range of virtual pipeline applications to customers during both planned and unplanned serve interruptions.

The Marlin team and its equipment offer a wide range of unique applications where pipeline supplies are not available or not able to meet customer requirements, serving local distribution companies, municipal gas companies, intrastate and interstate pipeline companies, large industrial customers and other markets within the U.S. These applications include solutions for emergency repairs, winter peaking supplies, pipeline integrity testing, equipment testing, pipeline reconstruction, fuel supply switching and bridging supply requirements in advance of pipeline connections.

To Learn more about Marlin Gas Services visit our 2018 Annual Report Microsite at cpkannualreport.com/2018/ and view the Marlin Gas Services video.

“This acquisition extends Chesapeake’s service offerings to a variety of new customers, allows for flexibility in meeting the needs of local distribution and transmission companies, and supports the expansion of our business,” said Jeff Householder, President and CEO.

PESCO

PESCO works closely with its customers to meet their demand. Spanning across six states in the Mid-Atlantic, Southeast and Midwest, PESCO provides a host of services – natural gas supply, asset management, and risk management services — to retail and wholesale customers. PESCO’s network of suppliers has expanded to include more than 10 transmission pipelines as has its distribution network which includes over 17 utility distribution systems.

Sharp Energy

6.0M gallons of bulk propane storage capacity | 4 rail facilities with propane storage capacity | 67M gallons of propane distributed annually

Sharp Energy continues to grow organically within its existing service territories while expanding geographically with a focus on markets on the western shore of Maryland and in northern Delaware. Sharp Energy continues to target new opportunities for CGS in high-growth areas while maintaining its relationships with builders and developers to ensure seamless implementation of the Community Gas Systems within the development. Through acquisitions and organic growth, Sharp Energy continues to target retail and wholesale customer growth in existing and in new markets.

In December 2018, Sharp Energy acquired the assets of Ohl Propane located in Lehighton, Pennsylvania.  Sharp Energy’s purchase of Ohl adds 2,500 customers who are served by our existing southeastern Pennsylvania operations.   Sharp Energy is continuing our expansion of services offered in Maryland.  We are in the process of permitting and constructing a bulk plant in White Marsh, Maryland to serve areas north of Baltimore, Maryland.

Sharp AutoGas keeps growing.  With reduced emissions and lowers, Sharp AutoGas currently fuels over 1,200 vehicles with 15 public and 33 private fueling stations, displacing over 3 million gallons of gasoline and diesel fuels annually.

Learn more about Sharp AutoGas and its benefits by viewing the DART – SHARP AUTOGAS video on our 2018 Annual Report Microsite at cpkannualreport.com/2018/